German solar company Sunways AG today announced an agreement with its creditors which it expects will allow the company to exit the preliminary insolvency proceedings started on May 7.
With the Kostanz company and wholly owned subsidiary Sunways Production also negotiating a way out of crippling long term wafer supply deals today, the pressure on the manufacturer has eased considerably.
Sunways AG announced it has reached a deal to pay an unspecified one-off amount to settle all outstanding claims arising from two long term wafer supply deals.
Having committed to buy wafers from 2006 to 2018 under one deal and from 2007 to 2017 under the other, Sunways AG negotiated last month to instead agree to purchase a specified amount of the solar material used to make cells until the end of this year.
That agreement has now been further amended with Sunways agreeing to pay the unspecified sum by the end of October to settle all outstanding claims arising from the two contracts.
It is estimated today’s agreement will wipe 10 million (US$13.3 million) from the liabilities on the company’s balance sheet.
And, on something of a red letter day for the manufacturer, it also renegotiated repayment of 7.6 million of receivables owed to its banks.
During the second quarter of last year, the company secured a 6.6 million credit line from the banks through to the end of next month only for credit facilities to be withdrawn in May after the Stuttgart-based BW Bank initiated preliminary insolvency proceedings, via the Kostanz local court.
With the receivables owed figure having risen to 7.6 million, Sunways has agreed to repay 5.6 million by the end of November with a further 1 million due in August 2015 and the outstanding 1 million waived. Sunways says it expects to exit preliminary insolvency proceedings as a result.